## IMF Reaches Staff-Level Agreement on a New 38-Month Extended Credit Facility Arrangement with Sierra Leone and Completes 2024 Article IV Mission

_IMF News, September 20, 2024_

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**Canonical URL:** [IMF Reaches Staff-Level Agreement on a New 38-Month Extended Credit Facility Arrangement with Sierra Leone and Completes 2024 Article IV Mission](https://www.imf.org/en/news/articles/2024/09/20/imf-reaches-sla-on-38-month-ecf-with-sierra-leone)

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## Bibliographic details
- Published: September 20, 2024

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### Staff-level agreement and procedural status
- IMF staff and the Sierra Leonean authorities have reached a staff-level agreement on economic policies and reforms that could be supported by a new 38-month Extended Credit Facility (ECF) arrangement.
- Requested access: SDR 187 million (about US$253 million).
- The staff-level agreement is subject to approval by the IMF’s Management and Executive Board.
- IMF mission conducted the 2024 Article IV consultation and program discussions during a visit from September 4 to 13, 2024.
- Statement delivered by Mr. Christian Saborowski, mission chief.

### Macroeconomic developments and recent policy actions
- Domestic primary deficit reduced by 2.8 percent of GDP in 2023 and on track toward reducing it by another 2.1 percent in 2024.
- Year-on-year base money growth reduced from a peak of 63.4 percent in June 2023 to 8.8 percent in June 2024.
- Policy rate increased by 7.25 percentage points since end-2022.
- Inflation declined to 25 percent in August 2024, down from a peak of 55 percent in October 2023.
- T-bill rates remain stubbornly high at over 40 percent.
- International reserves have fallen to less than two months of imports.
- Economic growth reached more than 5 percent in 2022 and 2023, buoyed by strong mining activity.
- Public debt assessed as sustainable but at high risk of distress.
- External position in 2023 assessed as broadly in line with the level implied by fundamentals and desirable policies.
- Operational losses at the electricity distribution company (EDSA) continue, resulting in significant fiscal pressures.

### Article IV consultation focus areas
- Fiscal and debt sustainability.
- Monetary policy operations.
- Drivers of inflation.
- External sector stability.
- Trade facilitation.
- Macroeconomic implications of gender inequality.
- Climate-related risks.
- Adequacy of social policies.

### Objectives of the proposed ECF arrangement
- Restore stability by:
  - Bolstering debt sustainability.
  - Addressing fiscal dominance.
  - Bringing down inflation.
  - Rebuilding reserves.
- Support inclusive growth and poverty reduction through:
  - Structural reforms, including to narrow gender gaps.
  - Targeted social spending.
- Revitalize the reform agenda to:
  - Confront corruption.
  - Strengthen governance, institutions, and the rule of law.
- Advance the poverty reduction and growth aspirations outlined in Sierra Leone’s Medium Term National Development Plan (MTNDP) 2024-30.

### Policy recommendations and priorities emphasized by staff
- Continue ambitious macroeconomic adjustment over the program period.
- Enhance revenue mobilization.
- Boost spending efficiency.
- Manage fiscal risks to create room for priority social spending and investment.
- Strengthen the monetary policy framework and maintain appropriately tight monetary conditions to safeguard internal and external stability.
- Commit to reforms and sustained political and social consensus to make durable progress in fighting poverty and raising standards of living.
- Promote gender equality and increase women’s economic participation to boost growth potential.
- Improve the business environment by:
  - Enhancing EDSA’s operational and technical efficiency.
  - Strengthening customs administration and transparency.
  - Addressing climate change risks.

### Engagement and consultations
- The IMF staff team met with President Bio; Finance Minister Bangura; Deputy Finance Ministers Alie and Kalokoh; Financial Secretary Dingie; Bank of Sierra Leone Governor Stevens; Deputy Governors Tucker and Sesay; Commissioner General Bangura of the National Revenue Authority; senior government and BSL officials; representatives from the private sector; and development partners.

*IMF Communications Department — Press Release No. 24/388, September 20, 2024*

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## References

- [Sierra Leone and the IMF](http://www.imf.org/external/country/SLE/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2024/09/20/imf-reaches-sla-on-38-month-ecf-with-sierra-leone_